ASTM E917-05e1

Standard Practice for Measuring Life-Cycle Costs of Buildings and Building Systems

SIGNIFICANCE AND USE
LCC analysis is an economic method for evaluating a project or project alternatives over a designated study period. The method entails computing the LCC for alternative building designs or system specifications having the same purpose and then comparing them to determine which has the lowest LCC over the study period.
The LCC method is particularly suitable for determining whether the higher initial cost of a building or building system is economically justified by reductions in future costs (for example, operating, maintenance, repair, or replacement costs) when compared with an alternative that has a lower initial cost but higher future costs. If a building design or system specification has both a lower initial cost and lower future costs relative to an alternative, an LCC analysis is not needed to show that the former is the economically preferable choice.
If an investment project is not essential to the building operation (for example, replacement of existing single-pane windows with new double-pane windows), the project must be compared against the “do nothing” alternative (that is, keeping the single pane windows) in order to determine if it is cost effective. Typically the “do nothing” alternative entails no initial investment cost but has higher future costs than the proposed project.
SCOPE
1.1 This practice establishes a procedure for evaluating the life-cycle cost (LCC) of a building or building system and comparing the LCCs of alternative building designs or systems that satisfy the same functional requirements.
1.2 The LCC method measures, in present-value or annual-value terms, the sum of all relevant costs associated with owning and operating a building or building system over a specified time period.
1.3 The basic premise of the LCC method is that to an investor or decision maker all costs arising from an investment decision are potentially important to that decision, including future as well as present costs. Applied to buildings or building systems, the LCC encompasses all relevant costs over a designated study period, including the costs of designing, purchasing/leasing, constructing/installing, operating, maintaining, repairing, replacing, and disposing of a particular building design or system.

General Information

• Status: Historical
• Publication Date: 30-Sep-2005
• ICS: 91.010.20 - Contractual aspects
• Technical Committee: E06 - Performance of Buildings
• Drafting Committee: E06.81 - Building Economics

Relations

• Replaces: ASTM E917-05 - Standard Practice for Measuring Life-Cycle Costs of Buildings and Building Systems
• Effective Date: 01-Oct-2005
• Replaced By: ASTM E917-05(2010) - Standard Practice for Measuring Life-Cycle Costs of Buildings and Building Systems
• Effective Date: 01-Apr-2010
• Referred By: ASTM E1074-15(2020)e1 - Standard Practice for Measuring Net Benefits and Net Savings for Investments in Buildings and Building Systems
• Effective Date: 01-Oct-2005
• Referred By: ASTM E3008/E3008M-16(2023) - Standard Classification for Transportation Surface Elements—UNIFORMAT II
• Effective Date: 01-Oct-2005
• Referred By: ASTM E964-15(2020)e1 - Standard Practice for Measuring Benefit-to-Cost and Savings-to-Investment Ratios for Buildings and Building Systems
• Effective Date: 01-Oct-2005
• Referred By: ASTM E3130-21 - Standard Guide for Developing Cost-Effective Community Resilience Strategies
• Effective Date: 01-Oct-2005
• Referred By: ASTM E2432-23 - Standard Guide for General Principles of Sustainability Relative to the Built Environment
• Effective Date: 01-Oct-2005
• Referred By: ASTM E2166-16(2023) - Standard Practice for Organizing and Managing Building Data
• Effective Date: 01-Oct-2005
• Referred By: ASTM E1121-15(2020)e1 - Standard Practice for Measuring Payback for Investments in Buildings and Building Systems
• Effective Date: 01-Oct-2005
• Referred By: ASTM E2103/E2103M-19 - Standard Classification for Bridge Elements—UNIFORMAT II
• Effective Date: 01-Oct-2005
• Referred By: ASTM E2506-15(2020)e1 - Standard Guide for Developing a Cost-Effective Risk Mitigation Plan for New and Existing Constructed Facilities
• Effective Date: 01-Oct-2005
• Referred By: ASTM E2150-17 - Standard Classification for Life-Cycle Environmental Work Elements—Environmental Cost Element Structure
• Effective Date: 01-Oct-2005
• Referred By: ASTM E3035-15(2020) - Standard Classification for Facility Asset Component Tracking System (FACTS)
• Effective Date: 01-Oct-2005
• Referred By: ASTM E1185-15(2020)e1 - Standard Guide for Selecting Economic Methods for Evaluating Investments in Buildings and Building Systems
• Effective Date: 01-Oct-2005
• Referred By: ASTM E1057-15(2020)e1 - Standard Practice for Measuring Internal Rate of Return and Adjusted Internal Rate of Return for Investments in Buildings and Building Systems
• Effective Date: 01-Oct-2005

Standards Content (Sample)

NOTICE: This standard has either been superseded and replaced by a new version or withdrawn.
Contact ASTM International (www.astm.org) for the latest information
´1
Designation: E917 – 05
Standard Practice for
Measuring Life-Cycle Costs of Buildings and Building
1
Systems
This standard is issued under the fixed designation E917; the number immediately following the designation indicates the year of
original adoption or, in the case of revision, the year of last revision. A number in parentheses indicates the year of last reapproval. A
superscript epsilon (´) indicates an editorial change since the last revision or reapproval.
1
´ NOTE—Section 2.2 and Footnote 4 were editorially corrected in January 2009.
INTRODUCTION
Several methods of economic evaluation are available to measure the economic performance of a
building or building system over a specified time period. These methods include, but are not limited
to, life-cycle cost (LCC) analysis, the benefit-to-cost ratio, internal rate of return, net benefits,
payback, multiattribute decision analysis, risk analysis, and related measures (see Practices E964,
E1057, E1074, E1121, E1765, and E1946).These methods differ in their measure and, to some extent,
in their applicability to particular types of problems. Guide E1185 directs you to the appropriate
method for a particular economic problem. One of these methods, life-cycle cost (LCC) analysis, is
the subject of this practice. The LCC method sums, in either present-value or annual-value terms, all
relevant costs associated with a building or building system over a specified time period. Alternative
(mutually exclusive) designs or systems for a given functional requirement can be compared on the
basis of their LCCs to determine which is the least-cost means of satisfying that requirement over a
specified study period.
1. Scope 2. Referenced Documents
2
1.1 This practice establishes a procedure for evaluating the 2.1 ASTM Standards:
life-cycle cost (LCC) of a building or building system and E631 Terminology of Building Constructions
comparing the LCCs of alternative building designs or systems E833 Terminology of Building Economics
that satisfy the same functional requirements. E964 Practice for Measuring Benefit-to-Cost and Savings-
1.2 The LCC method measures, in present-value or annual- to-Investment Ratios for Buildings and Building Systems
value terms, the sum of all relevant costs associated with E1057 Practice for Measuring Internal Rate of Return and
owning and operating a building or building system over a Adjusted Internal Rate of Return for Investments in Build-
specified time period. ings and Building Systems
1.3 The basic premise of the LCC method is that to an E1074 PracticeforMeasuringNetBenefitsandNetSavings
investor or decision maker all costs arising from an investment for Investments in Buildings and Building Systems
decision are potentially important to that decision, including E1121 Practice for Measuring Payback for Investments in
future as well as present costs.Applied to buildings or building Buildings and Building Systems
systems, the LCC encompasses all relevant costs over a E1185 Guide for Selecting Economic Methods for Evaluat-
designated study period, including the costs of designing, ing Investments in Buildings and Building Systems
purchasing/leasing, constructing/installing, operating, main- E1369 Guide for Selecting Techniques for Treating Uncer-
taining, repairing, replacing, and disposing of a particular tainty and Risk in the Economic Evaluation of Buildings
building design or system. and Building Systems
E1765 Practice for Applying Analytical Hierarchy Process
(AHP) to Multiattribute Decision Analysis of Investments
1
This practice is under the jurisdiction of ASTM Committee E06 on Perfor-
mance of Buildings and is the direct responsibility of Subcommittee E06.81 on
2
Building Economics. For referenced ASTM standards, visit the ASTM website, www.astm.org, or
Current edition approved Oct. 1, 2005. Published November 2005. Originally contact ASTM Customer Service at [e-mail]. For Annual Book of ASTM
approved in 1983. Last previous edition approved in 2002 as E917 – 02. DOI: Standards volume information, refer to the standard’s Document Summary page on
10.1520/E0917-05E01. the ASTM website.
Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959, United States.
1

---------------------- Page: 1 ----------------------
´1
E917 – 05
Related to Buildings and Building Systems 6. Procedure
E1946 Practice for Measuring Cost Risk of Buildings and
6.1 Follow these steps in calculating the LCC for a building
Building Systems
or building system:
E2204 Guide for Summarizing the Economic Impacts of
6.1.1 Identify objectives, alternatives, and constraints (see
Building-Related Projects
Section 7).
2.2 Adjuncts:
6.1.2 Establish basic assumptions for the analysis (see 8.1).
Discount Factor Tables Adjunct to Practices E917, E964,
6.1.3 Compile co
...

This document is not anASTM standard and is intended only to provide the user of anASTM standard an indication of what changes have been made to the previous version. Because
it may not be technically possible to adequately depict all changes accurately, ASTM recommends that users consult prior editions as appropriate. In all cases only the current version
of the standard as published by ASTM is to be considered the official document.
´1
An American National Standard Designation: E 917 – 05
Designation:E917–05
Standard Practice for
Measuring Life-Cycle Costs of Buildings and Building
1
Systems
This standard is issued under the fixed designation E 917; the number immediately following the designation indicates the year of
original adoption or, in the case of revision, the year of last revision. A number in parentheses indicates the year of last reapproval. A
superscript epsilon (´) indicates an editorial change since the last revision or reapproval.
1
´ NOTE—Section 2.2 and Footnote 4 were editorially corrected in January 2009.
INTRODUCTION
Several methods of economic evaluation are available to measure the economic performance of a
building or building system over a specified time period. These methods include, but are not limited
to, life-cycle cost (LCC) analysis, the benefit-to-cost ratio, internal rate of return, net benefits,
payback, multiattribute decision analysis, risk analysis, and related measures (see Practices E964,
E1057, E1074, E1121, E1765, and E1946E 964, E 1057, E 1074, E 1121, E 1765, and E 1946).These
methods differ in their measure and, to some extent, in their applicability to particular types of
problems. Guide E 1185directs you to the appropriate method for a particular economic problem. One
ofthesemethods,life-cyclecost(LCC)analysis,isthesubjectofthispractice.TheLCCmethodsums,
in either present-value or annual-value terms, all relevant costs associated with a building or building
system over a specified time period. Alternative (mutually exclusive) designs or systems for a given
functionalrequirementcanbecomparedonthebasisoftheirLCCstodeterminewhichistheleast-cost
means of satisfying that requirement over a specified study period.
1. Scope
1.1 Thispracticeestablishesaprocedureforevaluatingthelife-cyclecost(LCC)ofabuildingorbuildingsystemandcomparing
the LCCs of alternative building designs or systems that satisfy the same functional requirements.
1.2 The LCC method measures, in present-value or annual-value terms, the sum of all relevant costs associated with owning
and operating a building or building system over a specified time period.
1.3 The basic premise of the LCC method is that to an investor or decision maker all costs arising from an investment decision
are potentially important to that decision, including future as well as present costs. Applied to buildings or building systems, the
LCC encompasses all relevant costs over a designated study period, including the costs of designing, purchasing/leasing,
constructing/installing, operating, maintaining, repairing, replacing, and disposing of a particular building design or system.
2. Referenced Documents
2
2.1 ASTM Standards:
E 631 Terminology inof Building Constructions
E 833 Terminology of Building Economics
E 964 Practice for Measuring Benefit-to-Cost and Savings-to-Investment Ratios for Buildings and Building Systems
E 1057 Practice for Measuring Internal Rate of Return and Adjusted Internal Rate of Return for Investments in Buildings and
Building Systems
E 1074 Practice for Measuring Net Benefits and Net Savings for Investments in Buildings and Building Systems
E 1121 Practice for Measuring Payback for Investments in Buildings and Building Systems
E 1185 Guide for Selecting Economic Methods for Evaluating Investments in Buildings and Building Systems
E 1369 Guide for Selecting Techniques for Treating Uncertainty and Risk in the Economic Evaluation of Buildings and
Building Systems
1
This practice is under the jurisdiction of ASTM Committee E06 on Performance of Buildings and is the direct responsibility of Subcommittee E06.81 on Building
Economics.
Current edition approved Oct. 1, 2005. Published November 2005. Originally approved in 1983. Last previous edition approved in 2002 as E 917 – 02.
2
For referencedASTM standards, visit theASTM website, www.astm.org, or contactASTM Customer Service at [e-mail]. For Annual Book of ASTM Standards
volume information, refer to the standard’s Document Summary page on the ASTM website.
Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959, United States.
1

---------------------- Page: 1 ----------------------
´1
E917–05
E 1765 Practice for Applying the Analytical Hierarchy Process (AHP) to Multiattribute Decision Analysis of Investments
Related to Buildings and Building Systems
E 1946 Practice for Measuring Cost Risk of Buildings and Building Systems
E 2204 Guide for Summarizing the Economic Impacts of Building-Related Projects
2.2 A
...

This document is not anASTM standard and is intended only to provide the user of anASTM standard an indication of what changes have been made to the previous version. Because
it may not be technically possible to adequately depict all changes accurately, ASTM recommends that users consult prior editions as appropriate. In all cases only the current version
of the standard as published by ASTM is to be considered the official document.
´1
An American National Standard Designation: E 917 – 05
Designation:E917–02
Standard Practice for
Measuring Life-Cycle Costs of Buildings and Building
1
Systems
This standard is issued under the fixed designation E 917; the number immediately following the designation indicates the year of
original adoption or, in the case of revision, the year of last revision. A number in parentheses indicates the year of last reapproval. A
superscript epsilon (´) indicates an editorial change since the last revision or reapproval.
1
´ NOTE—Section 2.2 and Footnote 4 were editorially corrected in January 2009.
INTRODUCTION
Several methods of economic evaluation are available to measure the economic performance of a
building or building system over a specified time period. These methods include, but are not limited
to, life-cycle cost (LCC) analysis, the benefit-to-cost ratio, internal rate of return, net benefits,
payback, multiattribute decision analysis, risk analysis, and related measures (see Practices E964,
E1057, E1074, E1121, E1765, and E1946E 964, E 1057, E 1074, E 1121, E 1765, and E 1946).These
methods differ in their measure and, to some extent, in their applicability to particular types of
problems. Guide E 1185directs you to the appropriate method for a particular economic problem. One
ofthesemethods,life-cyclecost(LCC)analysis,isthesubjectofthispractice.TheLCCmethodsums,
in either present-value or annual-value terms, all relevant costs associated with a building or building
system over a specified time period. Alternative (mutually exclusive) designs or systems for a given
functionalrequirementcanbecomparedonthebasisoftheirLCCstodeterminewhichistheleast-cost
means of satisfying that requirement over a specified study period.
1. Scope
1.1 Thispracticeestablishesaprocedureforevaluatingthelife-cyclecost(LCC)ofabuildingorbuildingsystemandcomparing
the LCCs of alternative building designs or systems that satisfy the same functional requirements.
1.2 The LCC method measures, in present-value or annual-value terms, the sum of all relevant costs associated with owning
and operating a building or building system over a specified time period.
1.3 The basic premise of the LCC method is that to an investor or decision maker all costs arising from an investment decision
are potentially important to that decision, including future as well as present costs. Applied to buildings or building systems, the
LCC encompasses all relevant costs over a designated study period, including the costs of designing, purchasing/leasing,
constructing/installing, operating, maintaining, repairing, replacing, and disposing of a particular building design or system.
2. Referenced Documents
2
2.1 ASTM Standards:
E 631 Terminology of Building Constructions
E 833 Terminology of Building Economics
E 964 Practice for Measuring Benefit-to-Cost and Savings-to-Investment Ratios for Buildings and Building Systems
E 1057 Practice for Measuring Internal Rate of Return and Adjusted Internal Rate of Return for Investments in Buildings and
Building Systems
E 1074 Practice for Measuring Net Benefits and Net Savings for Investments in Buildings and Building Systems
E 1121 Practice for Measuring Payback for Investments in Buildings and Building Systems
E 1185 Guide for Selecting Economic Methods for Evaluating Investments in Buildings and Building Systems
E 1369 Guide for Selecting Techniques for Treating Uncertainty and Risk in the Economic Evaluation of Buildings and
Building Systems
1
This practice is under the jurisdiction of ASTM Committee E06 on Performance of Buildings and is the direct responsibility of Subcommittee E06.81 on Building
Economics.
Current edition approved Oct. 10, 2002. Published November 2002. Originally published as E917–83. Last previous edition E917–99.
Current edition approved Oct. 1, 2005. Published November 2005. Originally approved in 1983. Last previous edition approved in 2002 as E 917 – 02.
2
For referencedASTM standards, visit theASTM website, www.astm.org, or contactASTM Customer Service at [e-mail]. For Annual Book of ASTM Standards
, Vol 04.11.volume information, refer to the standard’s Document Summary page on the ASTM website.
Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959, United States.
1

---------------------- Page: 1 ----------------------
´1
E917–05
E 1765 Practice for Applying the Analytical Hierarchy Process (AHP) to Multiattribute Decision Analysis of Investments
Related to Buildings and Building Systems
3
E 1946 Practicefo
...